Pru posts 11% sales rise despite UK slip

Published on Thursday 19 October 2006 12:04

LIFE insurer Prudential has reported an overall 11 per cent rise in nine-month sales, although it saw a slight drop in its UK sales.

It also said it expects its internet bank Egg to post a loss in the second half of 2006.

The company, Britain's second-largest life insurer, posted total group sales of 1.8 billion, compared to 1.6bn during the same period last year.

In the UK, which accounts for just over a third of sales, Prudential said new business slipped by four per cent to 664m. But it saw strong growth in Asia, with sales rising by 29 per cent to 673m, while its US retail wing Jackson saw 15 per cent growth to 467m.

Its UK asset management business M&G delivered record net fund inflows of 5.1bn, up 87 per cent on the previous year, while its Asian equivalent operations grew by 65 per cent to 1.6bn.

Mark Tucker, the group's chief executive, said: "The group is in robust health with excellent prospects for continued profitable growth.

"Egg, however, was adversely affected by a marked deterioration in industry-wide consumer behaviour in this quarter."

Interest income at Egg was lower than expected as consumers reduced spending and borrowing, while there was also an increase in individuals using individual voluntary arrangements, debt management companies and in some cases bankruptcy to alleviate their debt burden.